Advising about International Development of Difference Inc. Dissertation

Guidance on Intercontinental Expansion of Gap Incorporation.

Job for International Business Environment

Group Task: Advising a multinational organization on the international organization development. Selected Company: Difference Inc.

Component Name

Worldwide Business Environment I

Term count: 4379

Submission Day: 09/11/2009

Articles

Abbreviationsv

Introduction1

1 . Impacts of Globalisation on Apparel Industry1

2 . Environmental Analysis of GAP's Expansion: Cina vs . Brazil3 Market Environment3

Market Size & Market Potential3

Clothes Industry Facts5

Economic Environment6

Apparel-shopping Perceptions and Behaviors7

Political Environment7

Political Risks7

Corruption8

Regulating Environment8

Reddish Tape8

Taxation9

Protecting Investors9

Factors in Value Chain9

Labour Market9

Raw Material Production and Manufacturing Capacity10

Distribution11

Decision and Reasons11

SWOT evaluation for GAP entering China13

Opportunities13

Threats14

Strengths and Weaknesses16

Recommendations16

Location and Distribution16

Item and Promotion16

Clothing Creation and Business Management seventeen

Conclusion17

Appendix 19

Reference21

Abbreviations

BRIC| Brazil, Russia, India and China

CISGCNCICCPC | China Industry Secureness GuideChina National Chemical Data CenterCommunist Get together of China| CPI| File corruption error Perception Index

CSRs EUFDI GAP| Corporate and business Social Tasks European UnionForeign Direct Purchase GAP Incorporation. | GCR| Global Competitive Report

GDPIPCIPL| Gross Home-based ProductIncome per CapitaIntellectual Real estate Law | IBGE| B razil Institute of Geography and Statistics

IPRs | Mental Property Legal rights

NLCL| Fresh Labor Deal Law

SWOTVAT | Strengths, Weaknesses, Opportunities and ThreatsValue Added Taxes | WFOEs| Wholly Foreign-Owned Enterprises

WIPO | Globe Intellectual Property Organization

WTO | Universe Trade Business

Introduction

Space Inc., with five worldwide brands, is actually one of the world's largest specialty retailers giving clothing, add-ons and personal care products for all age groups. Having above 3100 retailers worldwide from its foundation in 1969, which include company-owned-stores and franchise retailers, GAP offers reached US$14. 5 billion dollars revenue in 2008 (Gap Inc., 2009). GAP's on the net sale as well contributes more and more important to it is revenue, about US$1 billion in 08 (ibid. ). Although globalisation has benefited DIFFERENCE in the two value cycle and marketplace, it also create a danger to GAP, including stiff competition causing lost business in some countries like North America. Hence, trying to find new marketplace is extremely immediate for SPACE. China and Brazil, two large producing countries, catch the attention of more and more reflexion recently and possess many commonalities as well as variations in their business environments. Therefore , they are two optimal selections for GAP's development. China is generally a better option concerning the aspects of apparel market environment, monetary, political and legal environment, consumer behaviours and other factors in value chain. This kind of report can firstly look at the impact of globalisation upon apparel industry and evaluate China and Brazil's business environments. Then, the reasons why China is chosen will be explained. Finally, opportunities and threats the organization will encounter are forecasted and some tips will also be givenпјЊ considering GAP's conditions.

Effects on Clothes Industry of Globalisation

Globalisation can be defined as growing integration and interdependence of world markets and provides impacts about value sequence and market segments (Hill, 2009). Regarding benefit chain, apparel industry generally goes through design and style, planning, creation, marketing and advertising. To exploit nationwide distinctions in the cost and quality of factors of development, different periods of value string can be outsourced in varied countries with specialty. The feature of labour intensity allows apparel industry to be the pioneer of outsourcing and off-shoring to countries with low...

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